Forget about exotic vacations and fast cars; today's
consumers are interested in putting their money where they spend
the most time: their homes. Tired of living with the same old
kitchen cabinets, worn-out drapes and boring landscapes, homeowners
are redecorating, remodeling and replacing at record rates.

According to the Home Improvement Research Institute,
home-improvement product sales hit $158.9 billion in 1999, a 7.3
percent increase over 1998. And the institute predicts a growth
rate of 6.3 percent this year.

While do-it-yourself projects are still popular among certain
segments of the population, there's a growing trend among
consumers to pull out their wallets and seek assistance from
home-improvement experts. That means more profitable
home-improvement franchise opportunities for entrepreneurs.

"People are more willing than ever before to spend money on
their homes," says Gerald Baldner, president of Kitchen Solvers
Inc., a kitchen- and bath-remodeling company that has 110
franchises in 31 states. In 1999, the franchise earned $11 million
in sales.

"In the past five years, we've seen a dramatic increase
in kitchen and bath remodels," says Baldner. "The growth
is due in part to a good economy and an increase in discretionary
income, but it's also related to the fact that nowadays people
feel freer to spend money on their homes. Years ago, you bought a
house and lived with it. Today, homeowners ask, 'How can we
make it better?'"

The demographic market fueling this home-improvement boom?
Generally, married couples in their late 30s or older who have
lived in their current home for at least five years and earn annual
incomes of $40,000 or more, says Lori Marshall, owner and president
of Decor-At-Your-Door International, a franchise specializing in
window coverings, flooring and wallpapering. Marshall started as a
franchisee with Decor-At-Your-Door in 1998, and did so well, she
bought the company in early 2000.

"Many of our clients tell us that, rather than buying a new
home, it's cheaper and easier for them to fix up what they
have," she says. "They like their home, neighbors and
school system, and they don't want to leave. By replacing
carpeting or putting up window treatments, we can provide them with
an effective way to spruce up their homes, and they're almost
always delighted."

A Home Landscape Franchise

Thanks to the public's interest in updating their homes,
Marshall has found building her business amazingly easy.
"Customers don't want to do it themselves, so when they
find out about me, they're really happy," says
Marshall.

Marshall's clients also appreciate her affordable rates and
access to new products. "We stay current on the latest trends,
and we don't charge an hourly rate for our services," she
says. "We're also able to get group discounts on the
latest merchandise and pass those savings on to the
clients."

The interior isn't the only home location to benefit from
affordable, attainable technology, says Tim Hanauer, owner of
Earth
Graphics, a mobile service that provides digital images of
proposed landscapes from an on-site van. "Six years ago, we
didn't have a digital-imaging system with the ability to be
mobile," says Hanauer. "The landscape industry's
traditional lead-time for producing plans is about four weeks. With
this mobile digital technology, we've cut that to one day, and
customers are really responding."

Since Hanauer started the company in late 1994, Earth Graphics
has seen a steady increase in business. Today, it has three vans
and one franchise unit that generate $222,000 annually in design
fees, and they are geared to open more franchises. Hanauer expects
the company to create 925 residential landscape designs this
year.

Like many in the home-improvement industry, Hanauer has found
today's consumers eager to fix up their homes. "A lot of
people want a landscape they can enjoy," he says. "With
telecommuting and working from home becoming more popular, people
want inviting landscapes."

During his 14 years in the landscape industry, Hanauer has seen
job prices rise considerably. "When I started in the business,
clients commonly spent $2,000 to $5,000 on landscaping. Now
they're willing to invest $15,000 to $20,000," he
says.

With the increase in expense has come a renewed interest in
creative landscaping. "We're seeing a lot of naturalistic
and authentic items," he says, "such as real
cobblestones, landscape boulders and waterfalls."

A Kitchen Improvement Franchise

More than any other area of the home, kitchens succumb to
outdated styles and wear more quickly than other rooms, which makes
kitchen improvement a hot area. That's old news to Carrie and
John Bordenkircher, who haven't been without work since they
opened their Dayton, Ohio, Kitchen Solvers franchise in 1997.

"It's been so busy, we haven't had a problem
finding work. Our biggest challenge is keeping it," says
Carrie, who left a job as a full-time CPA to pursue owning a
business.

For a little less than $35,000, the Bordenkirchers bought a
Kitchen Solver franchise. In 1999, their gross sales were $225,000,
a figure they surpassed in May 2000.

The Bordenkirchers' niche is in the area of cabinet
refacing, which has seen changes in recent years. "People are
becoming more aware of the refacing process and are finding that,
thanks to new products on the market, you can get the look of
custom cabinetry for significantly less money," says Carrie.
"The process has become upscale-with real wood and new
designs, and it's usually half the cost of
replacement."

Trends in kitchens are changing faster than ever before, and
it's the Bordenkirchers' job to keep up with the times and
offer clients updated styles. "People see pictures and
articles about new stain colors, door designs, color combinations
and accessories," she says. "Kitchens have also become
increasingly user-friendly. When customers see a new look, we
encourage them to show us, and we provide it."

Homes aren't anything new-the difference is people are
staying in them longer. Whatever franchise you choose in the
home-improvement industry, providing customers with attractive,
affordable, up-to-date ideas and options can lead to a lot of
business in this lucrative market.

Julie Bawden Davis is an Orange, California, writer who
specializes in small and homebased business issues. She often
contributes to the Los Angeles Times, The San Francisco
Chronicle and Entrepreneur's Start-Ups
magazine.